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"You could get your books in order, have your company valuated, and offer a second block of stocks at a price an investment bank determines. If you show promising growth, the value of the second offering could help the existing share price increase as well."

2007-03-15 02:46:03 · 4 answers · asked by Anonymous in Business & Finance Investing

4 answers

Why would anyone buy your second share offering at a price higher than the stock that is already trading?

2007-03-15 04:51:35 · answer #1 · answered by bob shark 7 · 0 0

Revalued. Valuate isn't a word.

You don't need to ask analysts to revalue your company. That's not the way it works. Once your shares are public, the analyst community follows the share price. When they feel that it is higher than it should be, they will recommend that their affiliated broker/dealers sell the stock, bringing the share price down. When they feel that the value is too low, they will buy it. They're not going to uncover anything new just because you ask them to. As a public company all of the pertinent information should already be in the public domain.

2007-03-15 03:08:23 · answer #2 · answered by BigBill 1 · 0 0

That's so wrong on a couple of points.

1.) Analysts are constantly evaluating the intrinsic value of every publicly traded company and their findings are reflected in the stock price.

2.) Dilution will never increase share value. More shares outstanding = lower value per share. Pretty basic econ 101 stuff there...

2007-03-15 02:55:57 · answer #3 · answered by BosCFA 5 · 0 0

In international marketplace crude oil expenditures have long previous down. There are limit on expenditures at kinfolk point.. expenditures are desperate by using government. there's a value administration. clearly, expenses are greater so not rewarding. call for and furnish of shares, profitability of the corporation, promotors' integrity, government rules, operators, international tendencies etc. are the climate in finding out share expenditures.

2016-12-18 14:15:31 · answer #4 · answered by spadafora 4 · 0 0

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